Ocean Harvest Technology Group Provides Funding Update
Why we think this is neutral
The RNS announcement provides an update on the company's funding situation, indicating that it has been funded through the issue of secured loan notes to certain shareholders. While this is a positive development, the announcement also mentions that the directors believe recent events could constitute an event of default under the terms of the loan notes, which could allow the loan note holders to demand immediate redemption. This introduces an element of uncertainty around the company's funding position. Overall, the announcement does not contain any major positive or negative news, hence the neutral sentiment score.
Key Points
- Funded through secured loan notes to shareholders
- Directors believe recent events could constitute an event of default on loan notes
- Loan note holders have not yet demanded immediate redemption
Summary
Ocean Harvest Technology Group plc (AIM: OHT), a leading researcher, developer and supplier of proprietary blended seaweed products for the global animal feed industry, has provided an update on its funding position. The company has been funded through the issue of secured loan notes to certain shareholders, but the directors believe recent events could constitute an event of default under the terms of the loan notes, which could allow the loan note holders to demand immediate redemption. The company is in discussions with the loan note holders to resolve the funding situation.